Managing Loan Repayment or Forgiveness

Frequently Asked Questions 

1. When do I have to start repaying my loans?

Direct Subsidized and Unsubsidized loans have a six month grace period when you leave school or cease to be enrolled for at least 6 credits. When the grace period ends, the loans will enter repayment.

2. Where can I find the total loan amounts borrowed?

You can visit the Federal Student Aid website and use your FSA ID to view loan information such as how much was borrowed and loan servicer information.

For more information please visit: studentaid.gov

3. Can my student loans be consolidated?

Yes, consolidation allows a student to combine multiple federal loans into one larger loan. It can simplify your monthly payments by turning several payments into just one. For more information please visit: https://studentaid.gov/sa/repay-loans/consolidation

4. To whom do I make my loan payments?

Once your loans are in repayment, you would make loan payments to your servicer. The loan servicer is a company that the US Department of Education assigns to handle the billing and other services for your federal student loans. They will assist you with your repayment plan choices.

5. What if I can’t pay my loans?

If, at any point, you are having trouble paying your loans, be sure to contact your servicer as they may be able to help with other repayment options.

Two options to consider:

a. Deferment – Students needing to defer their loans can use a deferment which is a period of time where the repayment of principal and interest is temporarily delayed.

b. Forbearance - If students cannot make their scheduled loan payments, but don't qualify for a deferment, the loan servicer may be able to grant a forbearance. With forbearance, students can stop making payments or reduce the monthly payment for up to 12 months. Interest will continue to accrue on all subsidized and unsubsidized loans (including all PLUS loans).

For more information please visit:

https://studentaid.gov/sa/repay-loans/deferment-forbearance

6. What are my repayment options?

Deciding the right repayment plan is the key in determining your financial ability to pay. The following chart details the various loan repayment options:

Federal Student Loan Repayment Plans
Repayment Plan	Eligibilty	Payments and Time Frame
Standard Repayment Plan	These loan types are eligible: Direct Subsidized and Unsubsidized Loans Subsidized and Unsubsidized Federal Stafford Loans All PLUS loans (Direct or FFEL) All Consolidation Loans (Direct or FFEL)	Payments are a fixed amount and spread over 10 years.
Tier Standard Plan	All Direct Loans	Payments are a fixed amount and spread over 10-25 years
Graduated Repayment Plan	These loan types are eligible: Direct Subsidized and Unsubsidized Loans Subsidized and Unsubsidized Federal Stafford Loans All PLUS loans (Direct or FFEL) All Consolidation Loans (Direct or FFEL)	Payments are lower at first and then increase, usually every two years. Repayment is up to 10 years (up to 30 years for Consolidation Loans).
Extended Repayment Plan	You must have more than $30,000 in outstanding loans. These loan types are eligible: Direct Subsidized and Unsubsidized Loans Subsidized and Unsubsidized Federal Stafford Loans All PLUS loans (Direct or FFEL) All Consolidation Loans (Direct or FFEL)	Payments may be fixed or graduated and spread over 25 years.

7. Can my loans be forgiven?

Yes, student loans can be forgiven, canceled or discharged given certain situations. You may qualify for loan forgiveness based on your employment, disability, volunteer work/Peace Corps, or other special circumstances. For more information please visit: https://studentaid.gov/sa/repay-loans/forgiveness-cancellation.

8. What is the Public Service Loan Forgiveness Program?

If you are employed by a government or not-for-profit organization, you may be able to have a portion of your loan forgiven under the Public Service Loan Forgiveness Program. The program will forgive the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer. For more information visit:

https://studentaid.gov/sa/repay-loans/forgiveness-cancellation/public-service

9. What is the NYS Get on Your Feet Loan Forgiveness Program?

The NYS Get on Your Feet Loan Forgiveness Program provides up to 24 months of student loan debt relief to recent NYS college graduates who are participating in a federal income-driven repayment plan. Students must be U.S. citizens, NYS residents, current on all student loan payments, earn under a certain income as well as other criteria. For a complete list of eligibility requirements, please visit:

https://www.hesc.ny.gov/repay-your-loans/repayment-options-assistance/loan-forgiveness-cancellation-and-discharge/nys-get-on-your-feet-loan-forgiveness-program.html